Developer Erik Osborn testified at his felony trial Tuesday that he spent five years and several hundred thousand dollars working on a downtown luxury condominium project but has not seen even $1 for his efforts.
He also said auto-dealership owner “Dealin’ ” Doug Moreland refused to guarantee the $76 million construction loan for One Lincoln Park if Osborn didn’t meet certain demands, including paying back the money he earned building the sales center for the project.
“I could have replaced Moreland, but that would have caused substantial delays to the project,” Osborn testified.
Osborn, on trial in Denver District Court, is accused of two third-degree felony counts and faces up to 24 years in prison if convicted.
According to an indictment handed up in December 2007, Osborn allegedly diverted about $147,000 from One Lincoln Park and $108,000 from an office-building renovation project at 5351 S. Roslyn St. in Greenwood Village. He allegedly used the money for improvements to his home.
While on the stand, Osborn said Moreland has been paid about $2 million for his part in One Lincoln Park, located at East 20th Avenue and Lincoln Street.
“I think they’re taking action right now to make sure I don’t ever get a penny from this,” Osborn said.
Osborn’s investors in One Lincoln Park, who also included talk- radio personality Tom Manoogian, paid $1.9 million for the lot where the 32-story building sits and another $3.5 million to build a sales center. Moreland and Blair Richardson, managing partner of Bow River Capital Partners private-equity investment fund, provided $11.5 million in financing.
Osborn said he was removed from the project when Moreland and Richardson made a capital call that was not met. They then went to the title company and moved the earnest money put down by condo buyers to an account they controlled, he said.
That money was supposed to be paid to Osborn’s wife, Angela, as her commission for selling the units.
Margaret Jackson: 303-954-1473 or mjackson@denverpost.com
